By Ayo Kehinde 
After several months of public speculations over comparative prices of cement in Nigeria and other African countries, the Federal Competition and Consumer Protection Commission (FCCPC) has opened a further investigation into Nigeria’s cement market.
In a three-month cross-border study the Commission said its preliminary findings showed significant price differences between Nigeria and several African markets despite Nigeria’s substantial limestone deposits and installed cement production capacity.
The FCCPC’s Anticompetitive Practices Department, compared Nigeria with Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo.
According to the FCCPC, Nigeria has installed cement production capacity estimated at between 60 and 65 million metric tonnes annually, while domestic consumption is estimated at only 25 to 30 million tonnes.
Despite the apparent excess capacity and Nigeria’s position as a net exporter of cement to neighbouring countries, domestic prices have continued to rise.
The Commission said a 50kg bag of cement that sold for between ₦9,300 and ₦9,700 in January rose to ₦10,500 – ₦13,000 by mid-year and reached ₦13,000 – ₦15,000 in some locations by July.
In Kenya, where cement demand was estimated at 9.3 million tonnes in 2025, a 50kg bag sold for about $5.40, equivalent to ₦7,344 based on the FCCPC’s conversion.
In Tanzania, a similar bag sold for about $4.80, or ₦6,528, while in Togo, which the Commission noted has no limestone deposits, cement retailed at about $6.75, equivalent to ₦9,180.
The FCCPC said the disparity warranted closer examination of Nigeria’s pricing structure.
Industry operators have attributed rising cement prices to factors including energy costs, naira depreciation, imported machinery and spare parts, transportation and logistics expenses.
The FCCPC said it was testing these explanations against verified information on production costs, pricing, capacity utilisation and broader market conditions.
The Commission stressed that the investigation is not intended to control prices or prevent companies from making legitimate profits.
Instead, it is examining whether the market is operating competitively or whether companies may be engaging in coordinated conduct, abusing market power, restricting domestic supply or using anti-competitive distribution practices.
The FCCPC has issued Notices of Commencement of Investigation and Summons to Produce to key industry players, requiring them to submit records relating to pricing methodologies, production, capacity utilisation, exports and commercial relationships.
FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said cement’s importance to housing, infrastructure and business activity made the investigation necessary.
“Cement occupies a strategic place in the Nigerian economy. Its price affects the cost of building a home, developing commercial property, delivering public infrastructure and, ultimately, the cost of doing business”, Bello said.
He added that competition law does not prevent businesses from making profits, but seeks to ensure that prices and market outcomes are driven by genuine competition.
The investigation comes as high cement prices continue to put pressure on Nigeria’s construction industry, raising building costs for households, developers and government infrastructure projects.
The FCCPC said its investigation would ultimately determine whether the prevailing prices are justified by legitimate costs and market conditions or whether there is evidence of conduct that violates Nigeria’s competition laws.
Post Views:
127
